By Rorisang Modiba
- Petrol could rise to almost R30 a litre and diesel might reach nearly R40 a litre in Gauteng this May.
- Economist Dawie Roodt warned that these increases will cause the cost of living and inflation to go up over time.
South African drivers are facing massive petrol and diesel price increases in May.
Data from the Central Energy Fund shows fuel prices are much lower than what it costs to import.
This gap between the pump price and the import cost grew larger during April.
By 10 April, the petrol price had a shortfall of about R3.38 for every litre. The gap for diesel was even bigger at around R10.15 a litre.
Motorists will have to pay for these losses when the government adjusts prices next month.
This means diesel prices in Gauteng could shoot past R36 a litre. It could even hit nearly R40 if the government decides to stop its R3 fuel tax relief.
Petrol prices could go up to about R26.74 a litre. If the government brings the tax back, petrol could cost close to R30 a litre.
These huge increases are happening because global oil prices are very high at around $100 a barrel.
The rand is also weak, trading at about R16.40 to the US dollar.
Conflicts involving the United States and Iran in the Middle East have made things worse. These tensions disrupted supply routes and increased costs.
Economist Dawie Roodt said a big fuel price hike in May is almost certain, News24 reported.
He said oil prices will probably not drop soon and the rand will not strengthen quickly.
He warned that the impact of rising fuel prices spreads through the economy over time. This pushes up inflation and the cost of living.
The government cut the fuel levy by R3 in April to give drivers temporary relief. It is not clear yet if they will keep this help going in May.
Pictured above: A South African petrol station.
Image source: File
